About Pick of the Day

Every day, I will try to find what I believe is the best looking short term currency trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology behind price movements in the foreign exchange markets, so you can learn to analyze your own currency charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

Pick of the Day: USD/CHF

Greetings everyone! We’re keeping it simple tonight as USD/CHF takes a breather from its downtrend, we look for a possible retracement to jump in at a better price.

On the chart, we see the Dollar selloff and the minor retracement it is currently in, but will the selling continue? Of course, we will have to wait and see, but there is a good chance of volatility later tomorrow with the US Trade Balance forecasted worse than the previous month at -60.0B.

So, if the pair rallies a bit more we will jump in near the 50% Fibonacci retracement level. Here we go:

Short USD/CHF at 1.2110, stop at 1.2150, pt1 at 1.2090, pt2 at 1.2000

Remember to never risk more than 1% of your account on any single trade. Please adjust your position sizes accordingly.

Should we keep this parent/contingent order working OR has the window closed meaning we should cancel the order?

Pipcrawler

Greetings Pigactor,

I’ve left this open in hopes that the pair will retrace further, but after taking a look at this weeks news events I am going to close my open orders. Dollar sentiment is bearish right now, and this weeks reports may push it down further without out a retracement to 1.21…

pigactor

Should we keep this parent/contingent order working OR has the window closed meaning we should cancel the order?

Pipcrawler

Greetings Pigactor,

I’ve left this open in hopes that the pair will retrace further, but after taking a look at this weeks news events I am going to close my open orders. Dollar sentiment is bearish right now, and this weeks reports may push it down further without out a retracement to 1.21…